Graham Guides FY22 Revenue Above View; Acquires Barber-Nichols For $70 Mln – Quick Facts

While reporting financial results for the fourth quarter and fiscal 2021 on Tuesday, Graham Corp. (GHM) initiated its revenue guidance for the full-year 2022, well above analysts’ expectations.

For fiscal 2022, the company now projects revenues in a range of $130 million to $140 million, inclusive of Barber-Nichols’ revenue for the ten-month period, which is expected to be $45 million to $48 million.

On average, three analysts polled by Thomson Reuters expect the company to report revenues of $107.37 million for the year.

Separately, the Company announced the completion of the acquisition of specialty turbomachinery company Barber-Nichols Inc. for total consideration of $70.1 million, including $61.1 million in cash and $9.0 million in equity, or approximately 610 thousand shares at $14.69 per share. The acquisition is expected to be immediately accretive to earnings, including shares issued for purchase.

The cash consideration was paid using a combination of $41.1 million of cash on hand and $20.0 million from a new credit facility.

This combination positions Graham for higher, more stable growth as well as an improving margin profile with room for expansion.

The Company also announced today that Daniel Thoren, who was BNI’s Chairman of the Board and served as President and CEO for 24 years, has been appointed as President and COO of Graham Corp.

Matthew Malone, who had been recently named BNI’s President & CEO, has been appointed Vice President and General Manager- Barber-Nichols for Graham Corp.

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